Refer to the graph above. The equilibrium level of GDP corresponds to: AP Real expenditures A. GDPO. B. GDP1. C. GDP2. D. zero. K GDPO GDP1 GDP2 Real income AE
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- Explain briefly whether each of the following would cause GDP to overstate or understate the degree of change in the broad standard of living. The environment becomes dirtier The crime rate declines A greater variety of goods become available to consumers Infant mortality declinesThe table below gives some of the items in the U.S. National Income and ProductAccounts in 1995.ItemAmount(trillions ofdollars)Consumption expenditure 4.97Investment 1.14Government expenditures 1.37Net exports 0.08Wages 4.20Interest, rent, and profit 1.68Depreciation 0.89a) Use the expenditure approach to calculate U.S. GDP in 1995.b) Use the income approach to calculate U.S. net domestic product at factor cost inIn a simple economy, calculate gross domestic product using the following figures. (Not all variables need to be used, an extra variable may be given.)a. Calculate by spending approach.b. Calculate with income approach. Consumption 9500 Investment 3000 Wear 1750Profits 2400Exports 850Payments to employees 11500Government purchases 3200 Direct Taxes 1200Savings 1600 Imports 900
- 11:25 | 0.0KB/s © וו*ה K EXERCISE Jan 14 Q EXERCISE Jan 14, 2021 1. Define gross domestic product (GDP). State the four concepts of GDP. 2. 2. Which of the following are included in this year's GDP? Explain why each is included. (a) Dr Simone grows vegetables for home consumption. (b) The income of a general practitioner. (c) Government pays out BR1M. (d) The purchase of leather by a shoe manufacturer. 3. What is the difference between GDP and GNP? Give examples to explain. 4. Suppose that the information in the following table is for a simple economy that produces the following goods and services. Year 2010 Year 2011 Year 2012 Product Price Quantity Price Quantity Price Quantity (RM) (RM) (RM) A 1 180 1 200 1.25 200 B 90 75 90 100 100 120 0.6 675 0.5 600 0.5 630 (a) Calculate nominal GDP for years 2010, year 2011 and year 2012. (b) Calculate real GDP for year 2011 using year 2010 as the base year. What is the GDF deflator? (c) Calculate real GDP for year 2011 using year 2010 as the…A farmer grows a bushel of wheat and sells it to a Miller for $20.00. The Miller turns the wheatinto flour and then sells it to a Baker for $25.00. The Baker uses the flour to bake bread and sellsthe bread to a Musician for $40.00. The Musician eats the bread. The Musician, also growspumpkins in his backyard garden to feed his family. PLEASE ANSWER ONLY QUESTIONS D AND E. a. What is GDP? b. What is the valued added by each person? c. Should the pumpkins be included in GDP? Explain your answer.d. Why does GDP not include in goods that are resold? e. Why is it desirable for a country to have a large GDP?Give typing answer with explanation and conclusion what is the US GDP for the first quarter and second quarter of 2021? What is the personal consumption expenditures for the first quarter and second quarter of 2021?
- What components of GDP (if any) would each of thefollowing transactions affect? Explain.a. Uncle Henry buys a new refrigerator from adomestic manufacturer.b. Aunt Jane buys a new house from a local builder.c. The Jackson family buys an old Victorian housefrom the Walker family.d. You pay a hairdresser for a haircut.e. Ford sells a Mustang from its inventory to theMartinez family.f. Ford manufactures a Focus and sells it to Avis, thecar rental company.g. California hires workers to repave Highway 101.h. The federal government sends your grandmothera Social Security check.i. Your parents buy a bottle of French wine.j. Honda expands its factory in Ohio.You are given the following information about an economy:$millionsDerive the following:(i) National Income (ii) Net Investment (iii) Personal Income (iv) Disposable Income (v) Household Consumption Expenditure GDP at Market Prices 1,,669.4Imports 290.5Gross Domestic Capital Formation 48.7Income accruing to the Public Sector 39.0Retained Business Earnings 75.9Exports 273.4Subsidies 16.8Factor Payments from Abroad 10.0Capital Consumption Allowance 10.5Income Payments to Foreigners 19.2Direct Taxes 355.6Public Sector Consumption Expenditure 490.1Indirect Taxes 297.3Transfer Payments 25.7Air Canada buying a plane from Bombardier belongs in which part of the Canadian GDP components? Select one: Oa. Government Expenditures Ob. Net exports Oc. Consumption Expenditures Od. Investment Expenditures
- For each of the following transactions, determine the contribution to the currentyear’s GDP. d) You are informed that you have won a lottery worth GHC 3million to be paidto you immediately.e) You are informed that you have won a lottery worth GHC 3million to be paidto you immediately. In addition, the GNL pays you GHC 5000 to appear intheir promotional advert.f) Busy internet replaces all its stock of all computers with brand new locallymanufactured computers from rLg worth GHC 100m. It sells its old computersfor GHC 40million to rLg which resells them for GHC 60million after someminor repairs work on them.explain how gross product is calcu expenditure approachlates using theTime left 1:09:29 Calculate GDP using the information in the table below: SBillion Durable goods 500 Nonresidential investment 300 Government purchase of goods 400 Exports 300 Government purchases of services 150 Residential investment 100 Services 700 Imports 200 Change in business inventories -50 Nondurable goods 700 Select one O a. 2900 Ob. 2750 1950 Od. 2500
